Economy
Oil Prices Rise as Trump Weighs Iran Peace Deal, Fresh Strikes
By Adedapo Adesanya
Oil prices edged up late on Friday on renewed fears of further US strikes on Iran as President Donald Trump weighed a peace agreement or renewed attacks on the Middle East nation.
Brent crude futures settled at $98.32 a barrel, up 3 cents or 0.03 per cent, while US West Texas Intermediate (WTI) futures finished at $90.83 a barrel, up 31 cents or 0.34 per cent.
Both benchmarks saw their steepest weekly percentage fall since the start of the COVID pandemic and their biggest in absolute terms, with Brent down 17 per cent and WTI down 13 per cent. This occurred as the US midterm results raised hopes of a potential Iran war de-escalation and more crude exports out of the region.
After Democrats regained control of Congress, it increased expectations for political gridlock in Washington and raised the possibility that a Democratic Congress will press the White House to wind down the war.
High petrol prices had become a major political issue during the elections, and Vice President JD Vance blamed the conflict for Republican losses, while President Trump indicated there were no immediate plans for new strikes against Iran.
In oil markets, signs of an emerging supply excess amid demand destruction were reinforced by spot premiums for Middle Eastern crude benchmarks returning to levels reached before the conflict.
Meanwhile, a surge in tanker attacks in the Gulf and the Strait of Hormuz is renewing concerns over supply flows from the region.
A Greek ship manager said on Friday that a seafarer was killed in a November 5 explosion on an oil products tanker in the Gulf, believed to have been caused by a missile attack.
Data from Britain’s maritime security agency UKMTO suggested that attacks on oil-carrying ships are still running at close to a record pace.
Some of the world’s biggest oil traders – Trafigura, Vitol, Mercuria and Abu Dhabi National Oil Company – are negotiating with US officials for licenses to purchase or lease blacklisted oil tankers, Bloomberg reported Friday, citing people familiar with the discussions.
The talks involve approximately 50 vessels currently under American sanctions. Treasury officials are considering approvals on a case-by-case basis, although no decisions have been finalised.
